Hearings, lawsuits, votes and possibly money are in limbo now that Constellation Energy and FPL Group called off their planned merger.
The biggest and likely most contentious item is money previously set aside to help ease the impact of future utility rate increases.
As part of legislation approved by the Maryland General Assembly, Constellation Energy agreed to set aside $600 million.
The money is slated to reduce the impact of future utility rate hikes.
About $386 million was to come from Constellation Energy no longer collecting certain fees it was allowed to get from residential utility customers.
A state law required Constellation to stop collecting the fee.
Constellation officials have hinted that the $386 million was linked to approval of the merger, and now that the deal is off, that money is off the table.
Constellation Energy spokesman Robert Gould was cautious in his comments Wednesday about the money.
He said the utility questions the “legal efficacy” of not being able to collect the money in absence of a merger.
“We fully expect to engage in meaningful dialogue with key stack holders to seek a solution for the benefit of BGE customers,” Gould said.
But the utility company used more forceful language in an Aug. 24 filing with the Maryland Public Service Commission when it sought a fast-track approval process by the commission.
In arguing for stepped up hearings and commission votes, the utility stated that any legal question about the money would not be in dispute if the merger is approved.
“Although [Senate Bill 1] mandates a significant portion of the $600 million offer regardless of the merger ? namely the $386 million in rate reductions …. there is substantial uncertainty as to the legal efficacy of such provisions,” according to a statement in the filings.
Theresa Czarski, deputy people counsel with the Maryland Office of the People?s Counsel, said the $386 million reduction in fees should continue.
The people?s counsel is an independent state agency created to represent utility customers.
“The Senate bill was clear to give this money to offset these rate hikes,” Czarski said.
